SYDNEY, June 26, 2026, 03:06 (AEST)
- ANZ ended the day at A$34.86, losing 2.19%. Shares closed at their session low.
- Australia’s big four banks lost roughly A$12.3 billion in market value
- ANZ’s commercial and institutional loans are at A$273.5 billion
ANZ Group Holdings Limited (ASX:ANZ) fell 2.19% to A$34.86 on Thursday, touching its session low, after Judo Capital Holdings Limited (ASX:JDO) put out a warning on bad debts. Friday’s ASX cash session was yet to open at the time. ANZ volume came in at 5.87 million shares, about 16% above average. The bank lost about A$2.35 billion in market value.
ANZ, National Australia Bank Limited (ASX:NAB), Westpac Banking Corporation (ASX:WBC), and Commonwealth Bank of Australia (ASX:CBA) shed close to A$12.3 billion in market value by closing numbers based on rounded market caps. NAB shares dropped 3.35%, Westpac slipped 2.01% and CBA fell 1.27%. The combined hit for the big four was about 18 times the A$690 million that Judo lost on the same calculation.
Judo (ASX:JDO) shares tumbled 40.39% to close at A$0.92. The bank flagged three borrower-specific exposures across various sectors that will push its expected FY26 cost of risk to A$116 million to A$122 million. Judo expects loans 90 days or more past due and impaired loans will make up around 3% of gross loans by June 30. The loan book was over A$14.4 billion as of June 24. CEO Chris Bayliss said these credit outcomes are tied to “a small number of customers” and called the update “nevertheless disappointing.”
JPMorgan Chase & Co (NYSE:JPM) bank analyst Andrew Triggs said the three-borrower explanation gave “only limited comfort.” He said Judo’s recent credit updates were “likely to weigh significantly on the stock.” Triggs expects FY26 and FY27 earnings estimates to be cut by 8% and 15%. ABC News
ANZ is leaning on scale. Its Business & Private Bank and Institutional arms reported A$273.5 billion in net loans as of March 31, making up 33.3% of group loans and about 19 times Judo’s June 24 book. New non-performing, not well-secured Business & Private exposures were down 51% from a year ago to A$119 million. Institutional non-performing loans jumped 43% from September to A$114 million, still 24% lower than a year earlier. Group loans at least 90 days overdue dropped 6% year-on-year to A$5.04 billion.
Institutional drove the risk. Its expected-credit-loss allowance for individual customers jumped 44% to A$138 million due to higher impairments with some single names. Total allowances in Institutional climbed 3% to A$1.63 billion. Business & Private stayed almost unchanged at A$1.17 billion.
Australian jobs climbed by 40,300 in May and unemployment dropped to 4.4%. The Reserve Bank has hiked the cash rate three times in 2024, now at 4.35%. Krishna Bhimavarapu, APAC economist at State Street Corp (NYSE:STT), said the bounce in the labour market meant a “extended hold” was likely, but said sticky inflation could still mean a later hike. That policy outlook is key for ANZ’s commercial borrowers. Reuters
S&P/ASX 200 (INDEXASX:XJO) shed 0.68% to finish at 8,748.70. ANZ lagged, dropping 1.51 percentage points more than the benchmark and closing at its lowest point of the session.
ANZ lost about A$2.35 billion, which is nearly the same as the total A$2.50 billion gross value of its 83-cent interim dividend for around 3.01 billion shares. The bank has put forward the dividend, 75% franked, with payment set for July 1.
